Ending Inventory = Beginning Inventory + Purchases – Cost of Goods Sold (COGS) Purchases do not affect the income statement, since they represent purchases of unsold inventory which have not been delivered to the customer. However, COGS does show up on the income statement, since it represents...

Some businesses will take an initial deposit from the customer and deliver the goods or services at a later date or over a period of time. Instead of having the customer pay on credit, which would go to accounts receivable, you receive the deposit and end up with deferred / unearned revenue since yo...

Many traditional mid-market PE firms which focus on buying companies for their cash flows and do not have any real estate groups will try to avoid having to buy a lot of real estate in order to complete an LBO. This is because they prefer to focus on their core competencies in buying companies with ...

You should try to speak to a trend that is related to the group you’re interviewing for or the subsectors that the PE firm focuses on. For example, if the group is focused on infrastructure, you can speak to how solar power projects have been significantly boosted from the US infrastructure spendi...